A Simple Limited Partnership Agreement Template
When starting a small business, it`s important to have clear agreements in place with your partners. One option is to establish a limited partnership, which allows you to have both general and limited partners. General partners run the business and have unlimited personal liability, while limited partners invest money in the partnership and have limited liability.
To ensure that your limited partnership is legally sound and protects all parties involved, it`s essential to have a partnership agreement in place. Here`s a simple limited partnership agreement template to help you get started:
1. Partnership Name: The first section of your agreement should state the name of your partnership. Make sure to choose a name that is unique and not already in use.
2. Purpose: This section should outline the specific purpose of your partnership, including what products or services you will offer and any goals you hope to achieve.
3. General Partner(s): List the name(s) and contact information of the general partner(s) who will be responsible for running the day-to-day operations of the business.
4. Limited Partner(s): List the name(s) and contact information of the limited partner(s) who will be contributing capital to the partnership.
5. Capital Contributions: This section should specify the amount of money or other assets that each limited partner will contribute to the partnership, as well as how and when these contributions will be made.
6. Profits and Losses: Outline how profits and losses will be shared among the partners. Typically, general partners receive a larger share of profits in exchange for assuming more risk.
7. Management: This section should clearly define the roles and responsibilities of each partner, including who will make important decisions and how disputes will be resolved.
8. Term and Termination: Specify how long the partnership will last and how it can be dissolved if necessary.
9. Indemnification: This section should outline how the partners will be protected against any legal claims or liabilities that may arise during the course of the partnership.
10. Governing Law: Finally, specify which state or country`s laws will govern your partnership agreement.
This simple limited partnership agreement template is just a starting point. Depending on the specific needs of your business, you may need to include additional sections or modify certain provisions. It`s always a good idea to consult with a legal professional before finalizing any legal agreements. With a comprehensive partnership agreement in place, you can ensure the success of your limited partnership and protect all parties involved.